# The chains without losing profits from the specialty

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the chains without losing profits from the specialty stores?
Week 6 Chapter 15 Multiple Choice Key 1. b
2. b 3. a 4. a 5. b 6. d 7. c 8. a 9. d 10. c Short Answer 15-1 To Vote or Not to Vote Mr. and Mrs. Ward typically vote oppositely in elections and so their votes cancel each other out. They each gain two units of utility from a vote for their positions (and lose two units of utility from a vote against their positions). However, the bother of actually voting costs each one unit of utility. Diagram a game in which they choose whether to vote or not to vote. Mrs. Ward Vote Don't Vote Mr. Ward Vote -1 , -1 1 , -2 Don't Vote -2, 1 0, 0 15-2 To Vote or Not to Vote Part II Suppose Mr. and Mrs. Ward agreed not to vote in tomorrow s election. Would such an agreement improve utility? Would such an agreement be an equilibrium?
Chapter 16 Multiple Choice Key 1. c 2. d 3. c 4. c
5. d 6. a 7. b 8. b 9. b 10. a Short Answer 16-1 Newspaper Bargaining Two equal-sized newspapers have overlap circulation of 10% (10% of the subscribers subscribe to both newspapers). Advertisers are willing to pay \$10 to advertise in one newspaper but only \$19 to advertise in both, because they re unwilling to pay twice to reach the same subscriber. What s the likely bargaining negotiation outcome if the advertisers bargain by telling each newspaper that they re going to reach agreement with the other newspaper, so the gains to reaching agreement are only \$9? Suppose the two newspapers merge. What is the likely post- merger bargaining outcome?